During the Covid-19 crisis, entrepreneurs need to be hyper-conservative with their projections. Start by looking at where your business is spending in a given month, and determining your fixed expenses. When the bleakest moment hits, you have to calm yourself down.
The biggest difference between dropshipping and the standard retail model is that in drop shipping, the selling merchant doesn’t stock his own inventory. The entire process of order fulfillment under the Dropshipping business model involves Manufacturers, Wholesalers, and Retailers. They individually play their roles in the procurement of supplies and the shipping of the ordered products. As we all know, dropshipping is nearly zero initial financial investment. So, if you want to win the game, just spend more time and energy to test more dropshipping sites.
In the past couple of years, the dropshipping model of business has seen a huge rise. Because it’s a low cost and high returns business. It doesn’t take a lot of investment to set up a dropshipping store since you don’t have to keep an inventory, you don’t have to deliver any product, and you don’t need to hire much staff (or any at all mostly). There are online platforms for drop shippers such as Shopify and AliExpress that allow you to easily set up your store without much investment and start selling products right away. Shopify even has an app called Oberlo that allows quick and easy importation of products from AliExpress wholesalers to your e-store and gives you a lot of functionality.
The Long-Term Outlook: Coronavirus and Dropshipping
Ultimately, the main benefit of diversifying your supplier mix is the ability to maintain your operations. Even in worst case scenarios where one of the countries your suppliers are located in goes into lockdown, you’ll still have back-up suppliers to keep you operational. And with more and more people turning to eCommerce, you can turn this crisis into a safer future for your business.
Engage with the China Dropship Suppliers
China dropshipping model is getting sophisticated with every passing day. As more and more number of overseas business are opting for dropshipping, Chinese manufacturers have greatly sophisticated their services. Experienced China sourcing firms provide an all-encompassing drop shipping solution with a professional packing team and an ERP system that will fulfill your orders in a systematic way. All the hassle of packing of products to prepare them for shipment is taken care of for you. This will enable you to add new products to your offerings very quickly.
Start by looking at where your business is spending in a given month, and determining your fixed expenses – i.e. your non-negotiables. Then, consider any costs that may be reducible without sacrificing the overall standard, such as rent, excess marketing, or company size. Think as lean as possible – the goal is to fully convince yourself that your business is viable in even the worst, bare-bones scenarios.
Until the situation de-escalates and the world returns to a state of normality, orders for “Made in China” products will drop significantly. This again will hurt Western SMEs (the sellers), Chinese factories and production facilities, and logistics companies. Basically, the coronavirus has compromised the entire supply chain. As a business owner, you need to maintain your composure and restrain from taking unnecessary risks. This COVID-19 crisis really is different than any other. Everyone on the entire planet knows about it! And everyone is being impacted by it! When the bleakest moment hits, you have to calm yourself down.